Section 41605 Of Chapter 2. Basinwide Mitigation For Cogeneration And Resource Recovery Projects From California Health And Safety Code >> Division 26. >> Part 4. >> Chapter 2.
41605
. (a) The districts, in cooperation with the state board,
shall develop, adopt, and update, as necessary, a procedure to
determine the magnitude of the emissions from the existing electric
generating system in the air basin which would be displaced if
cogeneration technology projects and qualifying facilities were
constructed. The procedure shall be used once each year to determine
the utility displacement credits which shall be used in reviewing the
permit applications for new cogeneration technology projects and
qualifying facilities during the following year, and shall ensure
that the credits are real, permanent, quantifiable, enforceable, and
surplus.
(b) A district may reduce the emission offset requirement for a
cogeneration technology project or qualifying facility by the utility
displacement credits determined pursuant to subdivision (a). In all
cases in which a cogeneration technology project or qualifying
facility satisfies subdivision (c), a district shall reduce the
offset requirement for the project or facility by the utility
displacement credits determined pursuant to subdivision (a). A
district shall allocate at least 90 percent of the pounds of
emissions available in the form of utility displacement credits to
projects and facilities which satisfy the requirements of subdivision
(c).
(c) Utility displacement credits shall be granted to cogeneration
technology projects and qualifying facilities for those pollutants
for which net project or facility emissions, after offsets provided
pursuant to paragraphs (3) and (4) of subdivision (a) of Section
42314, are lower, on a pounds of pollutant per unit of energy
produced basis, than the emissions which would be generated by the
fossil-fuel fired existing electric generating system in the air
basin in the absence of the project or facility.
(d) Utility displacement credits shall be credited to a project or
facility only to the extent necessary to satisfy district offset
requirements, and only after credit has been granted for offsets
provided pursuant to paragraphs (3) and (4) of subdivision (a) of
Section 42314.
(e) The cogeneration technology project or qualifying facility
proponent, and the owner or operator of the purchasing utility, shall
provide to the state board or the district, as the case may be, the
information not publicly available from state or local agencies which
is necessary to make the determinations required by this section.
The information shall include, but is not limited to, all of the
following:
(1) Emission source test data.
(2) Chronological fuel use data.
(3) Chronological electric load data.
(f) In providing the utility displacement credits required by this
section, and for purposes of this section only, the utility, if not
an applicant, shall not be required to furnish emission offsets on a
case-by-case basis for the project. This section does not permit a
district on a case-by-case basis to limit the ability of the utility
to operate its existing hydrocarbon combustion facilities in
accordance with the requirements of the Public Utilities Commission
or the governing body of a public utility owned by a municipality or
other political subdivision of the state.